Goal to Propose Legislation Early Next Year
Linked with National Pension Timing
The People Power Party's Special Committee on Narrowing the Gap reached a consensus to extend the current retirement age from 60 to 65.
After the meeting on the 5th, Cho Kyung-tae, chairman of the special committee and a member of the People Power Party, told reporters, "However, to resolve the discrepancy with the National Pension receipt age, we decided to include a supplementary provision linking it to the National Pension receipt age." The retirement age will not be extended immediately to 65 but will be extended gradually. The retirement age will be increased to 65 in 2033, when the National Pension receipt age is postponed to 65.
He also pointed out issues related to the extension of the retirement age. He said, "First, there is the issue of reforming the wage system, which needs to be addressed," and added, "Second, there are voices saying that employment flexibility should also be guaranteed. There were concerns that extending the retirement age should not lead to taking away jobs from the youth."
When asked specifically what was discussed regarding the reform of the wage system, Rep. Cho replied, "There was a discussion about the wage peak system." He continued, "Even now, companies are somewhat reluctant to implement the wage peak system properly," and explained, "The wage peak system can be an alternative to reduce the burden on companies. Since the labor sector seems to have negative public opinion about reforming the wage system, close communication will be necessary."
The special committee plans to propose a bill to extend the retirement age early next year, including these contents. Three policy forums are also scheduled before the bill is proposed.
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